Markets show resilience; jump to record highs despite the week’s volatility

By Ajit Mishra

It was a long and volatile week but markets managed to reclaim their record high, in continuation to the prevailing trend. The tone was downbeat in the initial sessions however a sharp recovery in the final trades completely changed the bias. 

Consequently, both the benchmark indices, Nifty and Sensex, settled around the week’s high at 22,378.40 and 73,806.10 respectively. The majority of key sectors participated in the move wherein metal, auto and banking were among the top gainers while IT and pharma traded subdued. Meanwhile, the broader indices underperformed for yet another week and ended on a flat note. 

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In the absence of any major event, participants will continue to take cues from the global indices. While the US markets have been inching gradually higher with every passing week, the tech-heavy index, Nasdaq Composite, has finally reclaimed its record high after over two years and that may provide the needed trigger for an up move in IT counters here also. 

On the domestic front, we are now eyeing 22,800 in Nifty and expect banking, metal and IT to lead the surge. Traders should align their positions accordingly, with a focus on stock selection.  In case of any intermediate dip, the 21,900-22,150 zone would cap the downside in the index.  Come from Sports betting site VPbet

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Amid all positivity, the price action in the broader indices shows indecisiveness thus traders should maintain extra caution in midcap and smallcap space and maintain strict stops in the existing positions. 

(Ajit Mishra, SVP- Technical Research, Religare Broking. Views expressed are the author’s own. Please consult your financial advisor before investing.)

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Markets end at an all time high on Monday; Will the rally continue for Nifty- See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a lacklustre opening on Tuesday. Here is all you need to know before the market opens.

GIFT Nifty traded up by just 8.50 points or 0.04% at 22,180 indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 ended up by 81.55 points or 0.37% to settle at 22,122.25, while the BSE Sensex gained by 281.52 points or 0.39% to 72,708.16.

“Domestic Equities attained new highs with Nifty touching fresh levels of 22186.65 levels before closing with gains of 81 points at 22122. The midcap and smallcap indices surged in line with the benchmark. Majority of the sectors ended in the green. Consumer Durables, Pharma, …

Nifty and Bank Nifty futures set for consolidation in February series; Here are the key levels to watch for

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The February series Nifty futures started with a premium of around 135 points. The Nifty rolled around 81% and Bank Nifty around 77%. For the Index futures, FII has recently reduced shorts inducing their Net Index Long exposure to 34% which was at 22% at the start of series.

The Index is now likely to consolidate till 21500 is not breached on closing basis, for the rest of Feb series. 21450-21500 might be the immediate support and only a decisive close below it might bring in further downside.

VIX for the Nifty is currently at 16 and likely to remain in the 14 to 18 range implying a range of around 950 points in a month.

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Of the last 11 trading sessions, barring one, FPIs were net buyers, as they poured a whopping $4.8 billion (Rs 40,555 crore) into the Indian equities.

While FIIs were net buyers on Monday, pumping in Rs 1,261.13 crore, DIIs were net sellers at Rs 1,032.92 crore, according to provisional data with the exchanges.

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